Dalgety to hive off ag supplies

13 March 1998

Dalgety to hive off ag supplies

ONCE mighty food and agribusiness giant Dalgety is in talks to sell off its agricultural supplies division to a management buy-out.

The news comes only a few weeks after the company sold its food ingredients division for £360m and Spillers Petfoods for £715m. Total disposals since September total £1.04bn net of tax and costs, of which £650m will be paid to shareholders.

Paul Kirk, chief executive of the agricultural supplies division, is believed to be putting a bid together for the business, which is understood to be worth £50m. The Dalgety name may be included.

The division made an operating profit of almost £23m in 1995/96. But it crashed to a loss of £200,000 the following year as BSE and the slump in farm incomes resulted in a 27% drop in sales. This year, a £5-6m profit is predicted. &#42

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